NEW DELHI : The shares of Yes Bank Ltd went 4.7% up at ₹40.35 apiece in the session so far on Wednesday. The uptick in the share price comes a day after Yes Bank has acquired around 30% stake in a wholly-owned subsidiary of Reliance Power pursuant to invocation of pledged shares.
The lender has acquired 12,73,21,500 equity shares having nominal value of ₹10 each per share constituting 29.97% of the post-issue paid-up share capital of Rosa Power Supply Company Ltd (RPSCL).
The private sector lender will seek shareholders’ nod to raise ₹10,000 crore via combination of equity and debt at its Extraordinary General Meeting (EGM) scheduled on 7 February. Yes Bank will also seek shareholder’s nod to increase the authorized share capital from ₹800 crore to ₹1,100 crore at the EGM, as per a regulatory filing.
According to a Mint report, Yes Bank is recasting its capital-raising strategy, part of which involves abandoning its quest for big-ticket cheques in favour of relatively smaller and more frequent share sales. While the bank’s overall capital-raising target remains $2 billion, it now plans to raise the money in multiple tranches of around $400-500 million, the report says quoting sources privy to the development.
The change in Yes Bank’s strategy comes against the backdrop of the bank’s abrupt rejection of the $500 million investment offer made by Citax Holdings Ltd and Citax Investment Group. In November, the bank said Citax had evinced interest to invest $500 million in Yes Bank.
There had been consistent delay in bank’s capital raising plan and uncertainty regarding the quantum, lower current account deposits. The shares of Yes Bank plunged 8.4% to close at ₹38.55 apiece in Tuesday’s trade.